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The DocuSign IPO has been a smash hit so far as the stock's price is higher than anticipated.
The company - which focuses on creating digital signatures for signing documents and other document organization tools - priced its IPO Thursday evening at around $29 per share, which netted the company around $629 million. The price was better than what DocuSign was expecting initially in its IPO.
The original proposed price range was between $24 to $26 and was later raised to $26 to $28, giving the company a valuation of $4.4 billion on its IPO, above the $3 billion the company had raised for its last private round. DocuSign has been around since 2003 and the company has raised over $500 million over these 15 years.
In the fiscal year ending in 2018, the company brought in $518.5 million in revenue, up from the year-ago revenue of $381.5 million and $250.5 million the year before. Losses for the year tallied up to $52.3 million, less than half of the year-ago's losses of $115.4 million and below the $122.6 million from fiscal 2016.
DocuSign's IPO filing reveals that the company's largest shareholder is Sigma Partners with 12.9% of the company, while Ignition Partners owns 11.7% and Frazier Technology Ventures owns 7.2%. The company's competition includes HelloSign and Adobe Sign, but DocuSign has inked deals with the likes of T-Mobile Us Inc (NASDAQ: TMUS ), Salesforce.com, inc. (NYSE: CRM ) and Morgan Stanley (NYSE: MS ).
The company's business model is tiered as companies pay more depending on how many services they want.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
